Senate Bill No. 1222

Introduced by Senator Hertzberg

February 18, 2016

An act to amend Sections 910.4, 913.2, 913.4, 913.5, 913.10, 914.3, 914.7 of, and to repeal Sections 910.6, 913.3, 913.6, 913.8, 913.9, 913.11, and 913.13 of, the Public Utilities Code, relating to the Public Utilities Commission.

LEGISLATIVE COUNSEL’S DIGEST

SB 1222, as introduced, Hertzberg. Public Utilities Commission: reports.

The California Constitution establishes the Public Utilities Commission, with jurisdiction over all public utilities. The California Constitution grants the commission certain general powers over all public utilities, subject to control by the Legislature, and authorizes the Legislature to confer additional authority and jurisdiction upon the commission that is cognate and germane to the regulation of public utilities. Existing law requires the commission to submit various reports to the Legislature, legislative committees, and the Governor, as specified.

This bill would change the date by which the commission must submit specified reports, change the contents of specified reports, and repeal the provisions requiring the commission to submit specified reports.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 910.4 of the Public Utilities Code is
amended to read:

910.4.  

By begin delete January 10 end delete begin insert February 1 end insert of each year, the commission
shall report to the Joint Legislative Budget Committee and
appropriate fiscal and policy committees of the Legislature, on all
sources and amounts of funding and actual and proposed
expenditures, both in the two prior fiscal years and for the proposed
fiscal year, including any costs to ratepayers, related to both of the
following:

(a) Entities or programs established by the commission by order,
decision, motion, settlement, or other action, including, but not
limited to, the California Clean Energy Fund, the California
Emerging Technology Fund, and the Pacific Forest and Watershed
Lands Stewardship Council. The report shall contain descriptions
of relevant issues, including, but not limited to, all of the following:

(1) Any governance structure established for an entity or
program.

(2) Any staff or employees hired by or for the entity or program
and their salaries and expenses.

(3) Any staff or employees transferred or loaned internally or
interdepartmentally for the entity or program and their salaries and
expenses.

(4) Any contracts entered into by the entity or program, the
funding sources for those contracts, and the legislative authority
under which the commission entered into the contract.

(5) The public process and oversight governing the entity or
program’s activities.

(b) Entities or programs established by the commission, other
than those expressly authorized by statute, under the following
sections:

(1) Section 379.6.

(2) Section 399.8.

(3) Section 739.1.

(4) Section 2790.

(5) Section 2851.

SEC. 2.  

Section 910.6 of the Public Utilities Code is repealed.

begin delete

910.6.  

It is the intent of the Legislature that, commencing one
year from the date that the procedures described in subdivision (a)
of Section 311.4 are implemented, the commission annually review
the procedures and the technology involved to ensure the continued
effectiveness of the program, and report any findings to the
Legislature.

end delete

SEC. 3.  

Section 913.2 of the Public Utilities Code is amended
to read:

913.2.  

By begin delete January 1, 2011, and by January 1 end delete begin insert February 1 end insert of
each begin delete year thereafter, end delete begin insert year, end insert the commission shall report to the
Governor and the Legislature on the commission’s
recommendations for a smart grid, the plans and deployment of
smart grid technologies by the state’s electrical corporations, and
the costs and benefits to ratepayers.

SEC. 4.  

Section 913.3 of the Public Utilities Code is repealed.

begin delete

913.3.  

(a) By May 1 of each year, the commission shall prepare
and submit to the policy and fiscal committees of the Legislature
a written report summarizing the following information:

(1) All electrical corporation revenue requirement increases
associated with meeting the renewables portfolio standard, as
defined in Section 399.12, including direct procurement costs for
eligible renewable energy resources and renewable energy credits,
administrative expenses for procurement, expenses incurred to
ensure a reliable supply of electricity, and expenses for upgrades
to the electrical transmission and distribution grid necessary to the
delivery of electricity from eligible renewable energy resources
to load.

(2) All cost savings experienced, or costs avoided, by electrical
corporations as a result of meeting the renewables portfolio
standard.

(3) All costs incurred by electrical corporations for incentives
for distributed and renewable generation, including the
self-generation incentive program, the California Solar Initiative,
and net energy metering.

(4) All cost savings experienced, or costs avoided, by electrical
corporations as a result of incentives for distributed and renewable
generation.

(5) All pending requests by an electrical corporation seeking
recovery in rates for renewable, fossil fuel, and nuclear
procurement costs, research, study, or pilot program costs.

(6) The decision number for each decision of the commission
authorizing recovery in rates of costs incurred by an electrical
corporation since the preceding report.

(7) Any change in the electrical load serviced by an electrical
corporation since the preceding report.

(8) The efforts each electrical corporation is taking to recruit
and train employees to ensure an adequately trained and available
workforce, including the number of new employees hired by the
electrical corporation for purposes of implementing the
requirements of Article 16 (commencing with Section 399.11) of
Chapter 2.3, the goals adopted by the electrical corporation for
increasing women, minority, and disabled veterans trained or hired
for purposes of implementing the requirements of Article 16
(commencing with Section 399.11) of Chapter 2.3, and, to the
extent information is available, the number of new employees
hired and the number of women, minority, and disabled veterans
trained or hired by persons or corporations owning or operating
eligible renewable energy resources under contract with an
electrical corporation. This paragraph does not provide the
commission with authority to engage in, regulate, or expand its
authority to include, workforce recruitment or training.

(b) The commission may combine the information required by
this section with the reports prepared pursuant to Article 16
(commencing with Section 399.11) of Chapter 2.3.

end delete

SEC. 5.  

Section 913.4 of the Public Utilities Code is amended
to read:

913.4.  

(a) Notwithstanding subdivision (g) of Section 454.5
and Section 583, no later than May 1 of each year, the commission
shall release to the Legislature the costs of all electricity
procurement contracts for eligible renewable energy resources,
including unbundled renewable energy credits, and all costs for
utility-owned generation approved by the commission. The first
report shall include all costs commencing January 1, 2003.
Subsequent reports shall include only costs for the preceding
calendar year.

(1) For power purchase contracts, the commission shall release
costs in an aggregated form categorized according to the year the
procurement transaction was approved by the commission, the
eligible renewable energy resource type, including bundled
renewable energy credits, the average executed contract price, and
average actual recorded costs for each kilowatthour of production.
Within each renewable energy resource type, the commission shall
provide aggregated costs for different project size thresholds.

(2) For each utility-owned renewable generation project, the
commission shall release the costs forecast by the electrical
corporation at the time of initial approval and the actual recorded
costs for each kilowatthour of production during the preceding
calendar year.

begin insert

(b) The commission shall report all electrical corporation
revenue requirement increases associated with meeting the
renewables portfolio standard, as defined in Section 399.12,
including direct procurement costs for eligible renewable energy
resources and renewable energy credits.

end insert begin insert

(c) The commission shall report all cost savings experienced,
or costs avoided, by electrical corporations as a result of meeting
the renewables portfolio standard.

end insert begin delete

(b)

end delete

begin insert (d) end insert  This section does not require the release of the terms of any
individual electricity procurement contracts for eligible renewable
energy resources, including unbundled renewable energy credits,
approved by the commission. The commission shall aggregate
data to the extent required to ensure protection of the confidentiality
of individual contract costs even if this aggregation requires
grouping contracts of different energy resource type. The
commission shall not be required to release the data in any year
when there are fewer than three contracts approved.

begin delete

(c) The commission may combine the information required by
this section with the report prepared pursuant to Section 913.3.

end delete

SEC. 6.  

Section 913.5 of the Public Utilities Code is amended
to read:

913.5.  

In order to evaluate the progress of the state’s electrical
corporations in complying with the California Renewables Portfolio
Standard Program (Article 16 (commencing with Section 399.11)
of Chapter 2.3), the commission shall report to the Legislature begin delete on
or before the first day of each quarter end delete begin insert no later than November 1
of each year end insert on all of the following:

(a) The progress begin delete of each electrical corporation in meeting the
renewables portfolio standard, as defined in Section 399.12. end delete begin insert and
status of procurement activities by each retail seller pursuant to
the California Renewables Portfolio Standard Program. end insert

(b) For each electrical corporation, an implementation schedule
to achieve the renewables portfolio standard procurement
requirements, including all substantive actions that have been taken
or will be taken to achieve the program procurement requirements.

begin insert

(c) The projected ability of each electrical corporation to meet
the renewables portfolio standard procurement requirements under
the cost limitations in subdivisions (c) and (d) of Section 399.15
and any recommendations for revisions of those cost limitations.

end insert begin delete

(c)

end delete

begin insert (d) end insert  Any renewable energy procurement plan approved by the
commission pursuant to Section 399.13, schedule, and status report
for all substantive procurement, transmission development, and
other activities that the commission has approved to be undertaken
by an electrical corporation to achieve the procurement
requirements of the renewables portfolio standard.

begin insert

(e) Any barriers to, and policy recommendations for, achieving
the renewables portfolio standard pursuant to the California
Renewables Portfolio Standard Program.

end insert

SEC. 7.  

Section 913.6 of the Public Utilities Code is repealed.

begin delete

913.6.  

The commission, in consultation with the Energy
Commission, shall report to the Legislature by January 1 of every
even-numbered year on all of the following:

(a) The progress and status of procurement activities by each
retail seller pursuant to the California Renewables Portfolio
Standard Program (Article 16 (commencing with Section 399.11)
of Chapter 2.3).

(b) The status of permitting and siting eligible renewable energy
resources and transmission facilities necessary to supply electricity
generated to load, including the time taken to permit each eligible
renewable energy resource and transmission line or upgrade,
explanations of failures to meet permitting milestones, and
recommendations for improvements to expedite permitting and
siting processes.

(c) The projected ability of each electrical corporation to meet
the renewables portfolio standard procurement requirements under
the cost limitations in subdivision (d) of Section 399.15 and any
recommendations for revisions of those cost limitations.

(d) Any barriers to, and policy recommendations for, achieving
the renewables portfolio standard pursuant to the California
Renewables Portfolio Standard Program (Article 16 (commencing
with Section 399.11) of Chapter 2.3).

end delete

SEC. 8.  

Section 913.8 of the Public Utilities Code is repealed.

begin delete

913.8.  

In the report prepared pursuant Section 913.7, the
commission shall include an assessment of each electrical
corporation’s and each gas corporation’s implementation of the
program developed pursuant to Section 25943 of the Public
Resources Code.

end delete

SEC. 9.  

Section 913.9 of the Public Utilities Code is repealed.

begin delete

913.9.  

The commission shall report annually on its efforts to
identify ratepayer-funded energy efficiency programs that are
similar to programs administered by the Energy Commission, the
State Air Resources Board, and the California Alternative Energy
and Advanced Transportation Financing Authority in its annual
report prepared pursuant to Section 913 and to require revisions
to ratepayer-funded programs as necessary to ensure that the
ratepayer-funded programs complement and do not duplicate
programs of other state agencies.

end delete

SEC. 10.  

Section 913.10 of the Public Utilities Code is
amended to read:

913.10.  

(a) On or before begin delete January 1, end delete begin insert February 1, end insert 2010, and
biennially thereafter, the commission, in consultation with the
Independent System Operator and the State Energy Resources
Conservation and Development Commission, shall study, and
submit a report to the Legislature and the Governor, on the impacts
of distributed energy generation on the state’s distribution and
transmission grid. The study shall evaluate all of the following:

(1) Reliability and transmission issues related to connecting
distributed energy generation to the local distribution networks
and regional grid.

(2) Issues related to grid reliability and operation, including
interconnection, and the position of federal and state regulators
toward distributed energy accessibility.

(3) The effect on overall grid operation of various distributed
energy generation sources.

(4) Barriers affecting the connection of distributed energy to
the state’s grid.

(5) Emerging technologies related to distributed energy
generation interconnection.

(6) Interconnection issues that may arise for the Independent
System Operator and local distribution companies.

(7) The effect on peak demand for electricity.

(b) In addition, the commission shall specifically assess the
impacts of the California Solar Initiative program, specified in
Section 2851 and Section 25783 of the Public Resources Code,
the self-generation incentive program authorized by Section begin delete 379.6,
and the net energy metering pilot program authorized by Section
2827.9. end delete begin insert 379.6. end insert

SEC. 11.  

Section 913.11 of the Public Utilities Code is
repealed.

begin delete

913.11.  

The commission shall provide a progress report to the
Legislature by January 30 of each odd-numbered year concerning
policies on rates, equipment, and infrastructure implemented by
the commission and other state agencies, federal and local
governmental agencies, and private industry to facilitate the use
of electricity to power, and natural gas to fuel, low-emission
vehicles.

end delete

SEC. 12.  

Section 913.13 of the Public Utilities Code is
repealed.

begin delete

913.13.  

The commission shall annually report to the Legislature
on its implementation of Section 785.

end delete

SEC. 13.  

Section 914.3 of the Public Utilities Code is amended
to read:

914.3.  

By begin delete July 1 end delete begin insert December 31 end insert of each year, the commission
shall submit to the Governor and the Legislature a report that
includes, based on yearend data, on an aggregated basis, the
information submitted by holders pursuant to subdivision (b) of
Section 5960. All information reported by the commission pursuant
to this section shall be disclosed to the public only as provided for
pursuant to Section 583. No individually identifiable customer or
subscriber information shall be subject to public disclosure.

SEC. 14.  

Section 914.7 of the Public Utilities Code is amended
to read:

914.7.  

(a) By begin delete January 1 end delete begin insert April 1 end insert of each year, the commission
shall provide a report to the Legislature that includes all of the
following information:

(1) The amount of funds expended from the California Advanced
Services Fund in the prior year.

(2) The recipients of funds expended from the California
Advanced Services Fund in the prior year.

(3) The geographic regions of the state affected by funds
expended from the California Advanced Services Fund in the prior
year.

(4) The expected benefits to be derived from the funds expended
from the California Advanced Services Fund in the prior year.

(5) Actual broadband adoption levels from the funds expended
from the California Advanced Services Fund in the prior year.

(6) The amount of funds expended from the California Advanced
Services Fund used to match federal funds.

(7) An update on the expenditures from California Advanced
Services Fund and broadband adoption levels, and an accounting
of remaining unserved and underserved households and areas of
the state.

(8) The status of the California Advanced Services Fund balance
and the projected amount to be collected in each year through 2020
to fund approved projects.

(b) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2021.